...Entrepreneurial Strategy: Generating and Exploiting New Entries One of the essential acts of entrepreneurship is new entry—entry based on a new product, a new market, and/or a new organization. Entrepreneurial strategies represent the set of decisions, actions, and reactions that first generate, and then exploit over time, a new entry in a way that maximizes the benefits of newness and minimizes its costs. The creation of resource bundles is the basis for new entry opportunities. A resource bundle is created from the entrepreneur's market knowledge, technological knowledge, and other resources. The new entry has the potential of being a source of sustained superior firm performance if the resource bundle underlying the new entry is valuable, rare, and difficult for others to imitate. Therefore, those wishing to generate an innovation need to look to the unique experiences and knowledge within themselves and their team. Having created a new resource combination, the entrepreneur needs to determine whether it is in fact valuable, rare, and inimitable by assessing whether this new product and/or new market is sufficiently attractive to be worth exploiting and then acting on that decision. The decision to exploit or not to exploit the new entry opportunity depends on whether the entrepreneur has what she or he believes to be sufficient information to make a decision and on whether the window is still open for this new entry opportunity. The entrepreneur's determination of sufficient...
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... | |ENTREPRENEURIAL STRATEGY AND GOING GLOBAL | | | |ENTREPRENEURIAL STRATEGY: GENERATING AND EXPLOITING NEW ENTRIES | |STRATEGIES FOR GROWTH AND MANAGING THE IMPLICATION OF GROWTH | |GOING GLOBAL | | | | | |Himma Putri Sholihah (0910233042) | |Khaula Kharisma Zakhrani (0910233043) | | | | | CHAPTER 13 ENTREPRENEURIAL STRATEGY: GENERATING AND EXPLOITING NEW ENTRIES One of the essential things in entrepreneurship is new entry. New entry refers to offering a new product to an established market or new market, offering and established product to a new market, or creating a new organization. To introduce new entry we need entrepreneurial strategy. Entrepreneurial strategy is a set of decisions, actions, and reactions that first generate, and then exploit...
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...The past thirty years have witnessed the most powerful emergence of entrepreneurial activity in the world. Entrepreneurs are now described as aggressive catalysts for change in the world of business; individuals who recognize opportunities where others see chaos, contradiction, or confusion. They have been compared to Olympic athletes challenging themselves to break new barriers, to longdistance runners dealing with the agony of the miles, to symphony orchestra conductors who balance the different skills and sounds into a cohesive whole, or to top-gun pilots who continually push the envelope of speed and daring. The U.S. economy has been revitalized because of the efforts of entrepreneurs, and the world has turned now to free enterprise as a model for economic development. The passion and drive of entrepreneurs move the world of business forward as they challenge the unknown and continuously create the future (Kuratko, 2002). Several methods have been used to measure the impact of entrepreneurial ventures on the economy—for example, efforts to start a firm (which may not be successful), incorporation of a firm (which may never go into business), changes in net tax returns filed (reflecting new filings minus filings no longer received), and a substantial amount of full-time and part-time self-employment. According to the Small Business Administration, 672,000 new businesses were created in 2005; the largest in US history (even 12% higher than the...
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...strategic and entrepreneurial management are both combined and unified as a single management function. That is, Strategic Entrepreneurship which is a term vaguely coined by many describes the constant need of mangers focusing on objectives such as finding new business opportunities and taking advantage of creating short-term competition. An expectation of meeting such objectives creates a problem that is caused by having a select few elements of strategic management and entrepreneurship that overlap each other. Due to the general obscure understanding of how both strategic management and entrepreneurship are related, many studies have been conducted in order to better define Strategic Entrepreneurship. The article notes that in recent time, only one study goes to show a conceptual model of SE (Ireland 2003), but lacking in formulating a feedback loop between strategic management and entrepreneurship. Even though SE can be defined as simultaneous pursuit of opportunities and strategic advantages, the model presented by most early studies failed to pinpoint the correlation between the two. Due to the fact that SE is a new field of study, the article reviews all information on entrepreneurship, strategic management, and strategic information in order to determine the origin of SE, find the locus of integration, highlight the common components or elements, and scan through the elements that help in distinguishing SE in order to present a refined model of SE. Strategy helps differentiate...
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...The Entrepreneurial Mindset: Strategies for Continuously Creating Opportunity in an Age of Uncertainty Rita Gunther McGrath and Ian C. MacMillan Executive Summary * Successful executives will learn to master uncertainty through the skills of entrepreneurial leadership * This calls for different disciplines than in conventional management * There are five key elements: * Creating a climate supporting continuous search for opportunity * Framing * Stocking an opportunity register * Focus * Promoting adaptive execution Entrepreneurial leadership: The most important job Although uncertainty might cause many to freeze, it can be used to your benefit. Uncertain situations are full of new opportunities. Your task is to continuously identify high-potential business opportunities and exploit these opportunities with speed and confidence. Thus, uncertainty can become your ally, not your enemy. Entrepreneurial leaders are distinguished from other managers by their personal practices. These fall into three categories: setting the work climate, orchestrating opportunity-seeking and moving particular ventures forward personally. * Climate setting practices create a pervasive sense of urgency for everyone to work on new business initiatives. Dedicate a disproportionate share of your own time, attention and discretionary resources to finding and supporting new business models. Gary Wendt, who drove massive growth at General...
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...that brings people together with products that deliver lasting customer satisfaction. I am a MBA candidate at Thunderbird School of Global Management and I am interested in Toyota’s Strategic Resources Track internship that’s offered this summer. Toyota is defining the category and I want to bring my education and ten years of advertising experience to expand Toyota’s leadership position. I offer Toyota a passion for growing brands. In my advertising career I directed the success of regional and global brands and learned how to translate market data into strategies that delivered results. Additional skills relevant to this internship are listed below. Strategic Analysis I directed a team that positioned the fourth largest credit union in the U.S., BECU, as a financial leader in a highly competitive marketplace. Through analyzing our target audience and the financial category I identified insights that built a differentiated strategy. The advertising campaign that subsequently launched increased membership by 9% and reversed a downward trend in preference, consideration and awareness. Cross-Functional/Cultural Team Leadership I was responsible for managing all Publicis advertising agencies around the globe that supported Hewlett-Packard. As leader I had to persuade the regional teams to implement HP’s biggest branding initiative, at the time. By building relationships and...
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...and Steel business. One of the big projects on the pipeline is Tanjung Benoa Toll Road in Bali. First of all HK Aston is a newly startup company set up in 2009 with mission to differentiate services and bring more value to the industry towards better services as a group of businesses. Main purpose setting up subsidiary company with core business of specific services is to gain focus in asphalt services which value added perceive values. HK Aston business operation is still active during the process of spin off from division under Operation Directorate to become full fledge company. Even though setting up a good foundation of strong business need more than just a legal documentation and given business, moreover they must have a strong entrepreneurial spirits towards vision of the new company. In this case Budi will have to manage the three basic questions, “where are we now”, “where do we want to be” and “How to get there”. Those 3 questions will manage the expectation of action to be taken. Budi saw HK Group trust him and the new company plenty of resources ready to be maximize and also a fruitful connection to be explored. Similar with that on the risk side Budi also facing big risk of big projects outside APBN (Anggaran Perencanaan...
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...Notes Barney (develop resources for single business “SBU”) (static theory) Barney: Two assumptions = resource heterogeneity and resource immobility Companies have access to different kinds of resources, and therefore a resources can be a competitive advantages VRIO = resources should be analysed by VRIO to create value in the long-term vs. Wernerfelt (develop resources for multiple business: applying for more than one products ) (process/dynamic theory) 2) Wernerfelt: Different from Barneys resources based view = looks at how firm resources can create competitive advantages to a range of/multiple different business units - Sequential entry strategy = Ex. Apple, they have used the touch technology in many different products. The firm uses the same resource to entry new markets/products - Resources position barrier = the firm set up barriers internally to protect their competitive advantages against competitors ex. keeping systems secret, optimizing internal system, develop and renew knowledge etc. Alvarez and Busenitz (2001) have linked entrepreneurship theory and the Resource-Based View of the firm (RBV) by identifying resources as the central focus of the two theoretical models. In entrepreneurship, opportunities are recognized because individuals have heterogeneous views of resources while RBV views heterogeneous resources across firms as the basis for sustainable competitive advantage. Priem and Butler (2001) * One important limitation they point at...
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...Three Pillars Essay Grand Canyon University: UNV 504 Innovation and Entrepreneurship June 10, 2014 Three Pillars Essay In his video Ken Blanchard, discusses the three pillars of business; servant leadership, innovation and entrepreneurial spirit (Blanchard, 2011). Servant leadership is not being a servant to those that you work with, it is offering direction and vision with stated goals. It sets a platform for all employees to know where the company is headed, while focusing energy on the set goal. It requires that both management and employees live according to the vision with customers being the primary focus. Servant leadership if done correctly draws out the innovation in employees. It asks people to bring their ideas to work and put on their thinking caps to move towards better practices, efficient processes and more satisfied customers. It allows for the entrepreneurial spirit in employees to be developed. Employees not only become a part of the process for development and innovation, but partners in the business. They have a personal stake in the company which can build long term loyal employees working to sustain and grow for the customer, themselves and the business. Although servant leadership focuses on others and needs of the whole in most cases there could be some shortcomings to servant leadership. According to Lynch and Friedman servant leaders might easily focus more on the needs of the followers than the needs of the organization as a whole or considering...
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...Garine Benian Wednesday/ 3:00 10-29-14 Creativity in Business Case Study 1 (pg.35): 1. Prior to starting the EET, what types of things did Michael and Sheena do to help themselves build entrepreneurial knowledge/skills? * Michael and Sheena attended New York University, majoring in management and marketing and communication studies respectively. Prior to this Michael started their own web development company with a partner while he was still in high school. He honed his skills on increased his knowledge of starting and running a small business in the process. Sheena displayed a desire to be independent by establishing her own financial independence at the age of 17. She also funded her own college education, showing a strong work ethic and desire to succeed. While attending college she worked at a venture capital company thus giving her the opportunity to learn entrepreneurial skills. Sheena also taught at a non-profit organization that further increased her educational skills. 2. What motivated Michael and Sheena to start the EET? * They wanted to help college students realize their dreams through entrepreneurship. Michael and Sheena needed to find a way to increase sales and profitability in order to sustain this venture as a viable business. To do this he saw an opportunity in public speaking while promoting his manifesto and formed the EET. 3. How did Michael and Sheena determine that the EET was a sound idea? Did they use a feasibility analysis...
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...External/Internal Factors Paper Diversity is one of the most important things at The Home Depot. It is the catalyst for innovative thinking, entrepreneurial spirit and new ways of building our communities. To this end The Home Depot uses creativity, fresh thinking, and the experiences of people from different cultures and beliefs. The Home Depot believes that talent comes in many different forms and they celebrate each and every talent, because every talent is cultivated and is considered to be the foundation of our culture in America. At The Home Depot, the executive management team is responsible for diversity and creates a culture that welcomes every associate. The company encourages people from diverse backgrounds in all levels of management, and managers are accountable for attracting diverse candidates. The Home Depot realizes that as they continue to grow locally and globally, they will increasingly need for their associates to continue contributing to their efforts. The Home Depot values diversity because it offers a competitive advantage, makes the company a better place to work; and they can understand better their diverse customers’ needs in this way. The Home Depot gives customers better service and deliver. At The Home Depot, Managers are committed to creating a diverse work environment and in these circumstances all employees are included, respected, supported and encouraged associates to do the best work. The Home Depot recognizes with pride the uniqueness...
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...Smart Union is a Chinese toymaker located in Dongguan province. It was founded by Tony Wu and was emblematic of the rise of the manufacturing power of China. “Its orders, factories and employees steadily increased in number, and a web of suppliers grew up around it.” Mr. Wu had experience in the toy industry before founding Smart Union, and used his knowledge and entrepreneurial skills and established his own mainland factory in 1997. Within ten years, with clients such as Mattel and Disney, the firm was able to go public on the Hong Kong Stock Exchange and raise HK$53 million (US$7m). The firm had all of the factors of production going its way: land in mainland China; a large population of cheap labor; plenty of capital and the entrepreneurial ability of Mr. Wu. As all of these things started to go well for the firm, problems arose. “China began to overheat in 2007.” Attendant with the rise in profits, across all of China, the cost of labor started to increase. As there were more competitors vying to supply the same goods to Smart Union’s customers, the prices of their raw materials along with the rest of the production costs for its toys (namely electricity and oil). Further, most of Smart Unions goods were sold to American firms and thus paid for in American dollars. As the yuan appreciated in value, the firm’s profits were squeezed. Also, customers were taking advantage of the increase in suppliers of toys and made “tougher bargains with small...
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...Discuss which of the first four (4) stages of organizational growth presents the greatest single challenge and why. The first four stages characterize the period from inception of a new venture to the attainment of organizational maturity. This period includes the development of an entrepreneurship through the stage when the firm becomes a professionally managed firm. Stage III professionalization would the greatest single challenge because an organization must never lose its entrepreneurial mind set or spirit, but it must begin to develop the infrastructure and professional management systems required to facilitate its future growth. This a delicate balancing act. If an entrepreneurship is carried to an extreme in large companies, it can result in chaos, and chaos ultimately leads to organizational difficulties and even bankruptcy. (Flamholtz & Randle, 2007) The entrepreneurial personality can be a barrier to success at Stage III. Making the transition from an entrepreneurship to professional management involves more than just the development of operational and management systems. It requires a profound mind-set change on the part of people, especially the founders—the entrepreneurs. This transition may be a difficult task for entrepreneurs because they may fear of becoming “bureaucratic” and then confuse bureaucracy with systems. Some of this is deeply rooted in their personalities; they do want to be controlled by anyone or anything—not plans, not role descriptions...
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...Three Pillars Essay Shacola Columbus Grand Canyon University: UNV 504 Innovation and Entrepreneurship December 24, 2014 The college of business has three very distinctive pillars that help the college of business move a positive direction. The three pillars are servant leadership, entrepreneurial spirit, and innovation these are pillars that the college base there learning on. While looking at all three pillars you can see how they all play a role with each other. The first pillar were actually go in depth into is servant leader. Servant leader is finding out what the people needs and putting them first. Servant leaders help others and also meet their environment need that’s located around them. A servant led environment wants individuals to include their ideas and how they feel. In the article Leadership Excellence by Barrett, Colleen explains how to treat people and shows the power of a servant led organization. Colleen looks at the most important priorities in customer service, is to follow the golden rule. She encourages people to follow the golden rule treat people like they would want to be treated, and then everything else will fall into place. Having a positive and motivating environment will rub off to the customers and something positive will arise from it (Barrett, 2011). The next pillar that comes along with servant leader is innovation. Innovation comes from a servant leaders environment; in this type of environment its helps the individuals...
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...I vividly remember the moment I feel in love with the idea of being an entrepreneur. It was shortly after moving to Silicon Valley, while watching Mark Zuckerberg and Jim Breyer on the Harvard to Facebook lecture by Stanford Technology Venture Program's Entrepreneurial Thought Leader Seminars. During that podcast, I realized that with an idea and the right vision anything is possible. It is this conviction to take a risk to follow your dreams that is at the core of entrepreneurship. Merriam-Webster Dictionary defines entrepreneurship as "the of organization, management, and assumption the risks of a business or enterprise." Yet, this definition makes entrepreneurship seem like a set of actions instead of a mindset. In my opinion, entrepreneurship is not a prescribed set of actions. Following the beaten path does not make one entrepreneurial. Actually, it is the disregard of what is conventional that gives a person an innovative edge. From an etymological point-of-view, the word entrepreneur is based on the Sanskrit word "Antha Prerna," which in translation means "self-motivated." Self-motivation is the hallmark of an entrepreneur. Self-motivation is the x-factor, separating those who have the entrepreneurial mindset from others who are trapped in the conventional way of thinking. Self-motivation is not an ability, but a desire to reach for something greater. Something much larger than oneself. The late Steve Jobs captures this with his famous comment toward an employee: "We're...
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